Bitcoin has hit $50,000 per unit once again. The world’s number one digital currency by market cap has surged in recent days to a figure that it hasn’t seen in quite some time.
Bitcoin Is Spiking Like Never Before
As we have witnessed in the past, September tends to be rather bearish for bitcoin. This was never more evident than in 2020 when the digital currency – which was trading for about $12,000 per unit during August of that year – fell to about $10K just a month later. However, October saw the currency spiking back up to about $13,000.
This year appears to be bearing similar results. The currency had initially fallen into the mid-$40,000 range but is now up by approximately $6,000 in just the past few weeks alone. The news is particularly special considering all the rough points bitcoin has struck in recent days, largely thanks to China. The Asian country has been doing everything in its power to remove bitcoin from its turf, initially beginning with banning miners.
However, things didn’t stop there, and it wasn’t long before China decided that it was going to end all crypto trading activity within its borders, becoming one of the latest and most powerful countries to put a stop to crypto’s reign.
There’s just one issue… Crypto’s reign hasn’t stopped, and bitcoin has only shot up since news of the China ban first made it to global media sources. At press time, bitcoin is up nearly five percent over the last few days alone.
According to analysts with Bank of America:
We believe crypto-based digital assets could form an entirely new asset class. Bitcoin is important with a market value of ~$900bn, but the digital asset ecosystem is so much more. Our view is that there could be more opportunity than skeptics expect. In the future, you may use blockchain technology to unlock your phone; buy a stock, house, or fraction of a Ferrari; receive a dividend; borrow, loan or save money; or even pay for gas or pizza.
The Asset Has Been Through a Rough Patch
There has been much speculation surrounding bitcoin this year, as the currency rose to a new all-time high of approximately $64,000 per unit in mid-April. The currency was doing better than ever, though it’s likely that this peak was hit thanks to rising inflation, as prices of goods and services have gone up just about everywhere.
Sadly, things took an ugly turn when arguments surrounding the crypto mining scene began to become much more prominent. Figures like Elon Musk of SpaceX and Tesla fame were stating that the crypto mining space was being marred by heavy energy usage and that emissions were too high for the planet to handle. From there, bitcoin entered a downward spiral, and it took several months for the currency to again begin showing signs of life.